Pavilion REIT Posts Higher Net Profit Of RM105.8 Mln In 1Q
KUALA LUMPUR, May 7 (Bernama) -- Pavilion Real Estate Investment Trust (Pavilion REIT) posted a higher net profit of RM105.8 million for the first quarter ended March 31, 2026 (1Q 2026), from RM90.4 million recorded in the corresponding quarter last year.
Revenue also increased to RM245.9 million from RM228.2 million previously, said Pavilion REIT in a Bursa Malaysia filing today.
The higher revenue was mainly contributed by rental income from Banyan Tree Kuala Lumpur and Pavilion Hotel Kuala Lumpur, as well as stronger performance from Pavilion Bukit Jalil.
“Pavilion REIT recorded total gross revenue of RM245.9 million in 1Q, up RM17.7 million, or eight per cent, from RM228.2 million in the corresponding quarter last year,” it said.
Pavilion REIT maintained strong occupancy rates, and increased advertising revenue from the upgraded light-emitting diode (LED) screen at Elite Pavilion Mall contributed to this improvement.
The investment trust said property operating expenses increased marginally during the quarter, mainly due to higher maintenance costs related to ongoing upkeep and enhancement works across selected assets, although it continued to record stronger operating margins through operational efficiencies and tighter cost controls.
On prospects, Pavilion REIT said domestic demand is expected to continue supporting moderate growth, although uncertainties arising from the ongoing West Asia conflict could affect consumer spending confidence and supply chains.
In a statement, Pavilion REIT Management Sdn Bhd chief executive officer Datuk Philip Ho said the continued performance of Pavilion Kuala Lumpur and Pavilion Bukit Jalil reflects the resilience of Pavilion REIT’s flagship assets and their ability to capture sustained consumer and tourism-related demand.
“While we remain mindful of external cost pressures and a still-evolving global environment, Pavilion REIT has successfully navigated various market cycles over the years, and we continue to focus on operational execution, tenant curation and maintaining the competitiveness of our assets,” he said.
Ho said that Pavilion REIT’s flagship assets are expected to continue benefiting from consumer spending and tourism activity, supported by domestic consumption trends and their locations within key areas in Kuala Lumpur.
He added that ongoing tourism campaigns, cultural events and public activities are expected to continue supporting visitor traffic and retail activity, particularly at Pavilion Kuala Lumpur in Bukit Bintang.
-- BERNAMA